GRAINS-Soybeans at 2-week high as China tariff waivers add to trade hopes

09 Dec 2019, 12:58

* Soybeans up for 5th session on hopes of U.S.-China deal * China to exempt some U.S. soybeans, pork from tariffs * Wheat eases, corn little changed ahead of USDA data (Updates with European trading, changes byline/dateline) By Gus Trompiz and Naveen Thukral PARIS/SINGAPORE, Dec 9 (Reuters) - Chicago soybean futures rose for a fifth straight session on Monday to their highest in almost two weeks, after China's announcement last week about tariff waivers for U.S. soybean and pork encouraged hopes of a trade agreement. The rally in soybean prices remained capped by underlying caution regarding the protracted U.S.-Chinese trade negotiations, as well as expectations for a record soybean harvest in Brazil in the coming months. Chicago corn and wheat eased. Grain markets were awaiting further clues about supply from weekly U.S. Department of Agriculture (USDA) crop progress data later on Monday, followed by the USDA's monthly world crop forecasts on Tuesday. The most-active soybean contract on the Chicago Board Of Trade was up 0.3% at $8.92 a bushel at 1238 GMT. It earlier climbed to its highest since Nov. 26 at $8.94-1/4 a bushel as it extended a recovery from last Monday's near three-month low of $8.67-1/2. "The market is being helped by China granting further tariff waivers on imports of U.S. soybeans," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. "The better tone on U.S.-China trade sentiment also helped – but only so much." The tariff waivers on U.S. soybeans and pork were based on applications by individual companies, China's finance ministry said in a statement on Friday without specifying quantities. The tariff waivers are "good mood music," White House economic adviser Larry Kudlow said, although he said a Dec. 15 deadline for Washington to introduce further tariffs on Chinese goods remained in place. China's November soybean imports jumped from a year ago as shipments from the United States booked during a truce in the Sino-U.S. trade war cleared customs, customs data showed. In Canada, an official estimate on Friday pegging Canada's canola crop at a four-year low after wet harvest weather also lent support to oilseed markets. CBOT wheat was down 0.6% at $5.21-1/2 a bushel, while corn was 0.3% lower at $3.75-3/4 a bushel. The USDA's weekly crop progress report on Monday will give an update on a late-running U.S. corn harvest as well as conditions for young winter wheat plants. The agency's monthly world crop outlook on Tuesday will notably be watched for updates on southern hemisphere wheat production, including in drought-hit Australia. Commodity brokerage INTL FCStone on Monday projected this year's Australian wheat crop at 14.97 million tonnes, below last week's official estimate of 15.85 million. Prices at 1238 GMT Last Change Pct End Ytd Pct Move 2018 Move CBOT wheat 521.50 -3.00 -0.57 503.25 3.63 CBOT corn 375.75 -1.00 -0.27 375.00 0.20 CBOT soy 892.00 2.50 0.28 895.00 -0.34 Paris wheat Dec 185.75 0.00 0.00 191.25 -2.88 Paris maize Jan 164.75 0.00 0.00 175.00 -5.86 Paris rape Feb 397.75 0.75 0.19 366.00 8.67 WTI crude oil 58.60 -0.60 -1.01 45.41 29.05 Euro/dlr 1.11 0.00 0.14 1.1469 -3.46 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne (Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Uttaresh.V and Mark Potter)